Fed Gov. Jeremy Stein announces he's resigning

Fed Gov. Jeremy Stein announces he's resigning

Federal Reserve Governor Jeremy Stein, an increasingly influential official at the central bank with about four years left on his term, on Thursday announced he was resigning in a surprise move. In a letter to President Barack Obama released by the Fed, Stein didn't explain why he wanted to return to teaching at Harvard University's department of economics. "During my time here, the economy has moved steadily back in the direction of full employment, and a number of important steps have been taken to make the financial system stronger and more resilient," he said, adding there's more work to be done on both dimensions though progress has been made. The 53-year-old's resignation as governor of the Federal Reserve is effective on May 28. The Federal Open Market Committee already is down three members as it awaits the Senate confirmation of Stanley Fischer and Lael Brainard, and as Obama has yet to name a replacement for Elizabeth Duke. Stein had been influential in pushing the central bank to account for the risks to financial market stability in setting interest rate policy, and in particular was a leading voice in favor of tapering the central bank's bond-buying policy. Read the resignation letter.